Buy 2 Bank Stocks That Can Rally 29%: ICICI Direct Suggests Top Pvt Bank Stocks

ICICI Direct has recommended investors to buy 2 private sector bank stocks namely Axis Bank and Kotak Mahindra Bank as shares of both the banks are showing potential to soar higher. If you buy these stocks now, you can get maximum return of 29%. Check details below:

1. Buy Axis Bank

Last trading price of Axis Bank is Rs 853.05 apiece with 52-week high at Rs 970.45 apiece and 52-week low at Rs 618.10 apiece, respectively. ICICI Direct has suggested investors to buy Axis Bank with a target price of Rs 1100 apiece. If you buy Axis Bank now, you can get potential return of 29%.

The company has a market capitalisation of Rs 2,62,406.45 crore. The stock gave return of 13% in last 6-months, 15% in last 1-year, and 24% in last 3-years. In last 5-years, it rallied 62%.

Axis Bank Valuation: According to ICICI Direct, "Axis Bank's stock has given ~1.4x returns over the past two years. Acquired asset base is RoE accretive, however, synergy benefits seen to get accrued from 2HFY25E amid integration expense to be paid in next 18 months. Continued strong growth coupled with margin expansion to aid return ratios and sustainability of performance to drive valuation ahead. We continue to value Axis Bank at ~2.1x FY25E ABV and maintain our target price at Rs 1100 per share."

Buy Kotak Mahindra Bank

Last trading price of Kotak Mahindra Bank is Rs 1750.80 apiece. ICICI Direct has recommended investors to buy Kotak Mahindra Bank with a target price of Rs 2175 apiece. If you buy Kotak Mahindra Bank now, you can get potential upside of 24%.

The stock's 52-week high is Rs 1997.00 apiece and 52-week low is Rs 1630.00 apiece, respectively. The bank has a market capitalisation of Rs 3,47,786.29 crore.

The stock fell 2% in last 1-year, gave a return of 7% in last 1-year, and soared 59% in last 5-years.

Kotak Mahindra Bank Valuation: Kotak Mahindra Bank is led by strong promoter led management. It has a presence across financial services value chain. BUY with a target price of Rs 2175

Disclaimer

The stocks have been picked from the brokerage report of ICICI Direct. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.